DISTRICT ENERGY IN CITIES · • Direct selling of low-cost renewable power to DCS (open-access)...
Transcript of DISTRICT ENERGY IN CITIES · • Direct selling of low-cost renewable power to DCS (open-access)...
DISTRICT ENERGY IN CITIESA GLOBAL INITIATIVE TO UNLOCK THE POTENTIAL OF ENERGY EFFICIENCY AND RENEWABLE ENERGY
Stakeholder coordination for district cooling development
Stakeholder coordination training workshop, ThaneJointly prepared by:
UN Environment &
The Carbon Trust
• Include Hotmaps framework for stakeholder groups• Include Carbon trust• Stakeholder composition: based on Devine-Wright
• (go thematically or go by group?)
LAUNCH OF A TECHNICAL GUIDE
“In launching this report we want to draw the attention of the world’s decision makers, mayors
and leaders at the community level to the importance of district energy systems.” - Achim Steiner, UN Environment Programme Executive Director. Launch of the District Energy in Cities Report - Paris, 25 February 2015
10-step Methodology and Key Steps
10-STEP METHODOLOGY FOR
PROMOTING DISTRICT ENERGY
This is why city-led coordination is so crucial to
delivering a city’s district cooling ambitions.
District cooling is an opportunity to integrate city-systems in a smart way,
lowering costs and making cities more green, clean, resilient and livable.
But it needs municipal leadership to realise projects and unlock diverse benefits
District cooling is not just about air-conditioning!
Global publication: ‘District Energy in Cities: Unlocking the
Potential of Energy Efficiency and Renewable Energy- Case studies and guidance on stakeholder coordination
RESOURCES
Thane Rapid Assessment Report for District
Cooling- Analysis of structures for stakeholder coordination in Thane
Available from: http://districtenergyinitiative.org
VIRTUAL
PLATFORM Online Virtual Platform (upcoming)- Online knowledge centre of training material, tools,
methodologies and best practice case studies
OVERVIEW
• Global best practice can be adapted to Thane
▪ Champion cities
▪ Consultancies & Initiative partners
▪ Similar national/local programmes & lessons
• Structures from other city units could be replicated (e.g.
Smart City Cell) and other stakeholder groups
• Replicable guidance can be promoted to other Indian cities
▪ Methodology and Terms of Reference
▪ Training material
▪ Thane support to regional trainings
• Establishing a stakeholder-coordination framework or structure is key
deliverable for all pilot cities in the Initiative (as per 10-step methodology)
CITY LEADERSHIP IN THE DEVELOPMENT
OF DISTRICT COOLING
• Thane could promote, enable and accelerate district cooling projects locally by establishing and leading a District Cooling Cell and a local DC Stakeholder Group of city departments, developers, utilities, trade body associations etc. to ensure the coordinated development of district cooling across the city.
• UN Environment has prepared a recommended draft ToR for a District Cooling Cell and a local DC Stakeholder Group
• Having well-respected advocates represented in such a DC Stakeholder Group could help to raise the profile of district cooling activity in Thane and build stakeholder support for this infrastructure.
• Coordination by the District Cooling Cell could include:
• Oversight of the development of a pipeline of district cooling projects across the city and development of a long-term strategy for the connection of clusters
• Developing and implementing planning policies to secure the connection of new development to district cooling systems and ensure new buildings are futureproofed for connection
• Coordinating the timing of the laying of utilities and roadworks in order to save costs and minimize disruption.
• Developing financing mechanisms and business models to support district cooling (e.g. project aggregation)
• Receive appropriate training, dissemination of advice and information
How Thane can show leadership
Thane’s District Cooling Cell
City-level coordination of district cooling
Coordination support to individual projects
State and MMR governments and
agencies
National replication
• Strategy
• Mapping
• Planning
• Policy & Advocacy
• Approvals/Permitting
• Network routing
• Stakeholder
engagement
Local DC Stakeholder Group
SETTING UP A DISTRICT COOLING CELL
1. Define scope - could start as District Cooling and
then widen to longer-term energy developments
2. Define a Terms of Reference with clear roles and
responsibilities
3. Identify lead persons/department and dedicate
resource
4. Ensure clear accountability and transparency in
decision-making
5. Avoid complex accountancy and governance levels
6. Regular meetings and reporting
7. Support replication to other Indian cities
SETTING UP A DC STAKEHOLDER
GROUP
1. Map stakeholder responsibilities in DC
2. Define membership of a stakeholder coordination structure in Thane
3. Regular meetings and reporting
4. Potential members:
• TMC departments: public works, planning, electrical, finance, legal, water,
sanitation, pollution, Thane Smart City Development Corporation Ltd. (TSCDCL)
• Mumbai Metropolitan Regional Development Authority (MMRDA)
• Maharashtra Energy Development Agency (MEDA)
• Energy Efficiency Services Limited (EESL)
• ICLEI SAS
• Mahanagar Gas
• Maharashtra State Electricity Distribution Company Limited (MSEDCL)
• Maharashtra Chamber of Housing Industry (MCHI), Thane Unit
• Indian Institute of Architects, Thane and Mumbai Centre
• Major real estate developers in Thane (e.g. Hiranandani)
• Thane Small Scale Industries Association (TSSIA)
• Thane Belapur Industries Associations
• ISHRAE
COORDINATION AT THE CITY-LEVEL
WHY IS STAKEHOLDER COORDINATION
IMPORTANT FOR DC?
At the city-level strong coordination of stakeholders can deliver:
STRATEGYIncorporation of DCS into diverse, existing city strategies,
targets and plans that integrate city systems
MAPPING
Improved data and knowledge sharing for district cooling and
energy mapping
Early project identification
PLANNINGDevelopment of a long-term city plan for DCS
Coordination from state-level to city-level planning for DCS
POLICYMulti-stakeholder input to policy development
Advocacy for policy change
STAKEHOLDER COORDINATION TO
SUPPORT STRATEGY DEVELOPMENT
STRATEGY
Cities can drive DCS development towards city objectives by
incorporating DCS into existing strategies and targets using DCS to
integrate multiple sectors and city systems.
- The Initiative is developing a specific training module on incorporating
DCS into strategies to be available on the Virtual Platform
Smart City and electricity efficiency/resilience
GHG emissions and renewables
Waste management
Water stress
Air pollution
Urban resilience & emergency planning
Energy Access
Coordinate city-
departments and
external
stakeholders to
consider DCS
benefits to:
STAKEHOLDER COORDINATION TO
SUPPORT STRATEGY DEVELOPMENT
URBAN
RESILIENCE
• Use trigeneration to provide dedicated disaster relief buildings that continue to
provide power and cooling during disasters, blackouts and heatwaves
• Keep hospitals and vital infrastructure powered and cooled during blackouts with
trigeneration and thermal storage
• Evaluate role of DC, particularly with thermal storage, free cooling (lakes, rivers,
underground reservoirs etc.) or underground heat rejection, in lowering Urban
Heat Island Effect (e.g. Shenzhen, Paris)
• Emergency water wells combined with heat exchange
STAKEHOLDER COORDINATION TO
SUPPORT STRATEGY DEVELOPMENT
WATER &
SANITATION
• Reduce potable water use for cooling by making available Treated
Sewage Effluent (TSE) for district cooling
• Use freshwater extraction pipes from rivers/reservoirs/lakes/aquifers as a
cooling source or to remove excess heat (e.g. Toronto)
• Geothermal wells provide emergency water supplies (e.g. Paris, Milan)
• Running district cooling pipes through urban sewage system (e.g. Paris) or
in multi-utility tunnels alongside water, sewage, power and fibre-optic.
• Biogas from wastewater treatment used in trigeneration
• Excess heat from sewage can be used for heating/hot water demand
Toronto lake-water cooling Paris emergency water + geothermalDubai cooling plant with TSE
STAKEHOLDER COORDINATION TO
SUPPORT STRATEGY DEVELOPMENT
GHGs & LOW-
CARBON
DEVELOPMENT
• Provide data and support to assessments on the impact of cooling, heating
and hot water by sector on CO2 emissions and refrigerant emissions
• Incorporate district cooling into strategies, targets and plans for CO2
reductions
• Incorporate district cooling into refrigerant phase-out plans
• Coordinate the monitoring, reporting and verification of GHG emissions and
reductions through district cooling
STAKEHOLDER COORDINATION TO
SUPPORT STRATEGY DEVELOPMENT
ELECTRICITY AND
GAS PLANNING
• Analyse impact of cooling on electricity grid and % of power demand
• DCS can provide low-carbon, reliable power to critical infrastructure or
high power loads (e.g. municipal EV charging points, hospitals, data
centres, disaster shelters)
• DCS can lower capacity constraints and increase the resilience of the
power grid
• Direct selling of low-cost renewable power to DCS (open-access)
▪ improve commercial viability
▪ ensure renewable power is used in the highest efficiency application
▪ exert municipality influence on the DCS (e.g. reduced DC rates for
municipal buildings in return for low-cost power etc.)
• DCS can deliver on electricity objectives in a city’s Area-based
development under the Smart City Mission
• DCS can unlock higher renewables shares linked to Solar City Master
Plan
• How gas expansion in Thane can unlock trigeneration projects
STAKEHOLDER COORDINATION TO
SUPPORT STRATEGY DEVELOPMENT
WASTE
MANAGEMENT
• Role of waste incinerators to sell excess heat to district cooling systems
(through absorption chillers) and power (through electric chillers)
• Waste incinerators provide steam or hot water to industry applications
• Coordinating transmission pipeline of waste heat from incinerators to DCS
system
• Biogas production for use in trigeneration
STAKEHOLDER COORDINATION TO
SUPPORT STRATEGY DEVELOPMENT
AIR
POLLUTION
SMART CITY
PLAN
• Determine if diesel gensets or local coal plants contribute to local air
pollution and identify DCS and trigeneration role in reducing their use.
• Align district cooling to key themes and sub-goals under Smart City Plan and
its role in meeting Smart City objectives on: smart metering and monitoring of
water; infrastructure for IT/ITeS and edcuation, increase share of renewable
energy; reuse of wastewater; deenctralised wastewater treatment etc.
• Assess the incorporation of DC under Thane’s Area-Based Development
proposal and the area-design or linking of nearby DC projects (e.g. private
wiring of trigeneration power to the smart city area)
STAKEHOLDER COORDINATION FOR
ENERGY MAPPING
MAPPING
Identify potential DC projects, heat/cool sources and expansion and
interconnection opportunities. Identify priority and opportunity zones for
DC. Engage stakeholders and raise public awareness.
- The Initiative is developing a GIS energy map with Thane and a
specific training module on energy mapping
• Map existing and upcoming energy demand
and supply
• Identify potential DC projects and expansion
and interconnection opportunities.
• Plan connections of waste heat and
renewable sources
• Identify priority and opportunity zones for DC.
• Engage stakeholders and raise public
awareness.
• Identify sector integration opportunities
STAKEHOLDER COORDINATION FOR
ENERGY MAPPING
MAPPINGCollection and update of data in an energy map requires diverse
stakeholder input
e.g. existing and upcoming building developments
- Real estate developers
- Building owners
- Department of Planning
e.g. benchmarks for cooling and power demand
- Building owners, developers, architects
- DISCOMs
- AHSRAE/ISHRAE
e.g. waste heat sources & renewables
- Industry groups
- Incinerators, power plants
STAKEHOLDER COORDINATION FOR
ENERGY MAPPING
for example…industry
• Identifying waste heat from local industry for connection to absorption
chillers in DCS
• Identifying industrial users of cooling (manufacturers, data centres etc.)
• Identifying industrial users of steam/hot water to trigeneration (e.g. textiles,
food-processing, paper etc.)
• Identifying industrial users of power to trigeneration via private wiring
STAKEHOLDER COORDINATION FOR
DCS AND URBAN PLANNING
PLANNING
Cities can unlock long-term investments in DCS through coherent long-term
plans for district cooling and the integration of energy into urban and
infrastructure planning.
The Initiative is developing a 20-year District Cooling Plan with Thane and
training material to integrate DCS into urban and infrastructure planning
Initial individual networks
develop in highest potential
sites
Initial networks expand
connecting new
customers
Networks interconnect &
connect large waste heat
and renewable sources
SHORT-TERM MEDIUM-TERM LONG-TERM
STAKEHOLDER COORDINATION FOR
DCS AND URBAN PLANNING
”You often have land-use folks saying let’s put the buildings here, and transport planners saying how do we get people moving around – and then almost as an afterthought, folks say, well, how do we provide energy to the neighbourhood?
In Vancouver, we pioneered the integration of these various issues into our community building and urban planning.”
Sadhu Johnston, City of Vancouver
Electricity and gas plans
Sanitation and water plans
Waste management plans
Smart City Plan
Planning policies and urban zoning
Transport
State-level plans
Coordinate city-
departments and
external
stakeholders to
incorporate DCS
within:
STAKEHOLDER COORDINATION FOR
DCS AND URBAN PLANNING
“The Mayor will work with the relevant energy companies, Ofgem the regulator, national Government, the boroughs, developers, business representatives and others to promote strategic investment in electricity and gas infrastructure where and when it is required to accommodate the anticipated levels of growth in London.
The forecasting of requirements should take into account the opportunities and impacts of decentralised energy and demand management measures.”
The London Plan, 2016
Target: 25% of the heat and power used in London to be generated through local decentralised energy systems by 2025.
STAKEHOLDER COORDINATION FOR
DCS AND URBAN PLANNING
for example…linking buildings, power and transport
Transport, electrical and planning dept, DISCOM and EESL can coordinate
through the District Cooling Cell to use DCS to meet joint objectives:
• e.g. co-locating EV charging points to current/planned cooling demand
• e.g. investing in trigeneration rather than electricity network expansion in
constrained areas of network
• e.g. laying DCS network at the same time as power lines and/or relaying of
road surface
STAKEHOLDER COORDINATION FOR
DCS AND URBAN PLANNING
for example…updating planning rules and zoning
Coordinate inputs and consultation of real estate developers, building owners,
planning dept. and EESL to:
• e.g. secure concession zones for district cooling systems
• e.g. require new buildings to assess connection to DCS or development of
new DCS
STAKEHOLDER COORDINATION FOR
DCS AND URBAN PLANNING
• e.g. update municipal zoning and FSI
requirements to encourage dense, mixed-use
developments suitable for DCS
• e.g. planning incentives for buildings
developing/connecting to DCS
STAKEHOLDER COORDINATION FOR
DCS AND URBAN PLANNING
• Catalysing network development
• Large building developers must develop district heating if connection unavailable
• Large new waste heat sources must accommodate connection to district energy
• London required its 32 boroughs to carry out energy master planning
• Encouraging connections
• Large building developers must connect to local district heat networks if available
• Coordination
• London established a dedicated city unit that coordinates long-term development of district energy in the city
CASE STUDY: LONDON
STAKEHOLDER COORDINATION FOR
DEVELOPMENT OF DCS POLICY
POLICY
Cities can incentivize and remove barriers and risks to DCS development
through streamlined approvals and permitting procedures, local policy
development and advocacy for state or national-level policy changes
The Initiative will work with Thane to design new policies and provide
training material on urban, state and national policies for DCS
Advocate for state/national policy• VAT/GST incentives• Power tariffs for thermal
storage• Trigeneration grid connection• Standards• Building codes
Analysis of local policy options• Fiscal incentives• FSI bonus • District cooling ready
buildings• Connection policies• Concession contracts• ‘Open-access’
Thane’s District Cooling Cell
Streamlining• Clear permitting procedures• Fast approval process
STAKEHOLDER COORDINATION FOR
DEVELOPMENT OF DCS POLICY
• Align DC with rollout of Energy Conservation Building Code
(ECBC) in Maharashtra (joint workshops, demonstration
projects, incentives)
• Adapt DCR to include FSI bonuses for buildings that develop or
connect to DC networks
• Adapt DCR to require ‘DC ready’ buildings in particular priority
zones
• Incorporate DC into rehabilitation plans for urban
neighbourhoods including retrofitting of cooling systems
• Require new large-scale developments to include DC
for example…local building policies
COORDINATION AT THE PROJECT-LEVEL
WHY IS STAKEHOLDER COORDINATION
IMPORTANT FOR DC?
At the project-level a District Cooling Cell could lower overall
costs, significantly lower risks and create a more attractive
project to investors
Design challenges:
• Early incorporation of DCS into area design
• Meeting developer timeline
• Network routing with other utilities
Permits and approvals from multiple departments and
stakeholders
• Planning: Energy center and network route
• Utility connections
• Rights-of-way on public and private lands
• Approvals (e.g. road diversion, excavation, access to land)
STAKEHOLDER COORDINATION FOR
DEVELOPMENT OF DCS POLICY
• District Cooling Cell and DC Stakeholder Group members
(DISCOM, water, gas utility, sanitation dept. etc.) have
knowledge of:
• Existing pipe network under Thane’s streets
• Planned public works or road relaying
• District Cooling Cell can help projects lower costs by:
• Identify underground obstacles (e.g. water main) during
design and construction
• Co-locate DC pipes with other infrastructure
• Undertake maintenance works on other utilities or road
relaying in parallel to DC network construction
for example…network routing with other utilities
Singapore
IMPORTANCE OF STAKEHOLDER
ENGAGEMENT
Thane Municipal Corporation and the DC Cell can lead stakeholder engagement at the city-level to support projects alongside engagement by individual project proponents
Stakeholder engagement: Why do we care?
It protects organisational reputation
It de-risks projects and makes positive investment decisions more likely
Creates projects that will actually happen, products that people buy, ideas that people accept
Two possible stakeholder engagement scenarios
Gone wrong
Lack of information -misunderstandings
Bad decisions taken on bad information
Nasty surprises at decision points
Unnecessary extra time and cost
Negative impact on credibility
Project goes nowhere
Gone well
Good governance
Appropriate resourcing and input
Predictable decision-making process
Robust decisions taken on good information
Strengths and weaknesses are
understood
Stakeholder engagement: What it is – and what it’s not
What stakeholder engagement is What stakeholder engagement is not
Genuine two-way process One way communication
Meaningful dialogue where views are respected and taken seriously
Process where views are managed and people driven in one direction
A collaborative exercise to reach a solution that works
Pitching or selling a pre-determined solution or project
Focused on outcomes – e.g. a project that everyone buys into, general happiness
Focused on outputs – interviews have been held therefore stakeholders have had their say
Structured and systematicengagement
Conversations with the people you know or think you need to talk to
Change Behaviour change
Varying the engagement throughout the project development process
Pre-feasibilityFeasibility and business case
Commercialisation Construction Operation
Introduce stakeholders
to the project, collect
technicaland financial information
to inform project
feasibility
Understand stakeholder commercial
appetite,quantify
project risk, outline
relationship terms
Negotiate contracts and secure
commitment to connect, manage
expectations during construction
Keep stakeholders
satisfied
5-STEP PROCESS TO STAKEHOLDER
ENGAGEMENT
1. Identification
Stakeholder groups, organisations and individuals are identified. The stakeholder list is refined as the project progresses.
2. Mapping
Stakeholders are mapped and profiled to understand the nature of their interests, goals and motivations.
3. Prioritisation
Stakeholders are prioritised and visualised on an Influence-Interest Grid.
4. Planning
Appropriate communication channels and resourcing are allocated to stakeholders according to their level of priority. Tailored key messages are developed.
5. Engagement
Emphasis is put on ensuring that all stakeholders understand the purpose of the engagement, as well as the background and strategic vision for the project.
DISTRICT ENERGY ROLES
DISTRICT ENERGY ROLES
Role Description
Promotion Party with the motivation to establish a successful district energy network and which takes responsibility for driving delivery.
Customer A heat/cool customer will contract with a Supplier who will provide their heat/cool in exchange for a promise to pay. The Customer may be a commercial entity, a domestic tenant or homeowner.
Governance The Governance role includes setting objectives, prescribing policies and rules of conduct and overseeing performance.
Funding The Funder arranges finance and enters into agreements with the funding recipient. This role often ceases once finance has been repaid.
Asset Ownership The Asset Owner owns the physical assets of the network. Ownership could be split between different classes of assets.
Land Ownership The role of the land owner, in this context, is to grant leases and easements for the siting of network assets and provide rights of access for the installation, operation and maintenance of plant and equipment.
Landlordship The Landlord, in this context, owns the buildings in which network assets and heat customers are located.
Development of property
The parties responsible for constructing or maintaining the buildings which will receive heat from the heat network. This encompasses developers of new properties and owners of existing properties.
Installation and Operation
The installer designs and installs the heat network (typically primary, not secondary network). An Operator is responsible for the operation and maintenance of the heat network in such a manner as to ensure that heat of suitable quality and quantity can be delivered to Customers.
Sale of Heat The sale of heat as a service is a logically distinct role from the physical delivery of heat to customers, as can be seen in the nationally regulated UK electricity and gas markets.
PROJECT-LEVEL COORDINATION
GROUPS
Key considerations: • should have basic Terms of
Reference to give the necessary clarity and accountability to those inside and outside the group
• Governance reporting and progress reviews should be commensurate to the work being done and stage of project development
• Review of barriers and performance should dovetail with existing governance structures
• Processes should be agreed for how performance and progress is reviewed against known risks in the project risk register
As well as a District Cooling Cell in Thane, individual projects should establish small coordination groups
Structures such as existing or new project boards and working groups should be used to progress the project efficiently and obtain approvals
Key activities:• Set out and communicate widely
the project vision, focusing on the interaction between different priorities
• Gather necessary information to develop the project
• Review business models and sign-off the study outputs
CASE STUDY: LEEDS CITY REGION, UK
Stakeholder engagement makes projects more likely to happen
Barnsley: what was achieved?
1. Helped avoid crisis associated with the opposition of the Better Barnsley development team and delivery partners
2. Engagement with prospective customer Barnsley College developed their interest in acting as an investment partner of Barnsley Council
3. Engagement with prospective customer Digital Media Centre revealed their ownership of stranded biomass assets and interest in providing generation capacity to the scheme
Key Outcomes
1. Used stakeholder intelligence to shape direction of project
2. De-risked the project through a greater understanding of stakeholder perspectives
3. Improved the viability of the investment opportunity to make the project more likely to happen
• Supporting the development of a portfolio of district energy projects across 11 local authority areas in the Leeds City Region with a combined capital value of >£90m.
• Regional coordination through the Leeds City Region District Energy Programme – led by the combined authority
CASE STUDY: VELENJE, SLOVENA
Velenje, Slovenia has an energy agency, KSSENA, to facilitate the implementation of its energy concept, including modern district energy.
- Dedicated team manages coordination on energy in the city
- Manages development of energy plans and strategy
- Supports energy management (audits, accounting, benchmarking, feasibility studies)
- Project support (financing, cooperation with energy companies, tender evaluation)
CASE STUDY: BERGEN, NORWAY
Use district heating in all new buildings and major renovations within the concession area for district heating
Municipal master plan, which closely links energy, urban development and transport
Develop district heating along light-rail minimizes disruption
Established group of companies and agencies named the Digging Club - district heating network owner- water and sewage departments- waste management company - local electricity distribution operator
THANK YOU!
http://www.districtenergyinitiative.org/
Benjamin Hickman
Technical Expert
District Energy in Cities Initiative